5 stocks on which tech charts have 'buy' signals

5 stocks to bet on

It was a disappointing week for the Dalal Street where domestic indices dropped even after opening higher for most of the sessions. For the week, Sensex fell 371 points, or 1.10 per cent, to close at 33,314.56. Nifty50 dropped 130.75 points, or 1.25 per cent, for the week to settle at 10,321.75. Continuing its sluggishness, market opened on a choppy note on Monday as well.

Let's have a look at the top stocks that are likely to gain this week.

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Kajaria Ceramics | BUY | TARGET PRICE: Rs 760

After marking a classical Double Top near 775, the stock traded in a falling channel in a corrective action. A resumption of upward price move is likely. The Daily MACD stays in continuing buy mode. A buy signal over Weekly Stochastic has emerged with a bullish divergence against the price. The Weekly chart shows formation of a large Ascending Triangle which usually results into bullish implications and a upward breakout.

2/6

BCCL

Kansai Nerolac Paints | BUY | TARGET PRICE: Rs 550

The stock has traded in a broad range over previous quarter. During this time, though not classical, but a Complex Inverse Head & Shoulder Pattern is formed. Though such pattern usually emerges after a downside, but sometimes, it also emerges as a continuation pattern. The RSI on the Daily Chart is neutral while MACD is sharply moving towards positive crossover. Stochastic remains in a continuing buy mode. On Balance Volume – OBV has already formed a fresh high which is bullish.

3/6

BCCL

TV18 Broadcast | BUY | TARGET PRICE: Rs 50

After breaking out from a ascending triangle formation, the stock suffered a severe throwback owing to formidable Double Top Resistance in the 46-47 zones. A fresh buy signal has emerged over Daily Stochastic with a bullish divergence against the price. The Daily MACD stays in continuing buy mode. Lead indicators remain neutral on the Daily Charts. On the Weekly Charts, the stock has formed a broad rectangle formation and has traded in a defined range for more than year and a half. An attempt to breakout is likely over coming days.

4/6

BCCL

Igarashi Motors India | BUY | TARGET PRICE: Rs 960

The stock is seen consolidating over past couple of weeks and in the process has taken support at its 200-DMA. While remaining in a continuing buy mode over Daily Stochastic, the Weekly Stochastic too has reported a fresh buy signal with a bullish divergence. While the stock consolidated, the RSI has formed a higher bottoms and looks to breakout from a formation. Upward revision of prices may not be ruled out over coming days.

5/6

BCCL

Colgate Palmolive (India) | BUY | TARGET PRICE: Rs 1,100

The stock failed to clear the resistance area in the 1125-1130 zones comprehensively and has been trading in a broad trading range in a rectangle formation. There are bright chances of a technical pullback in this stock. It has taken support at its 200-DMA which also coincides with a strong pattern resistance. A buy signal has emerged over Weekly Stochastic on the Weekly Charts. The Daily MACD is set to report a positive crossover as well. Lead indicators remain neutral.

(Milan Vaishnav, CMT, is Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, Vadodrara. He can be reached at milan.vaishnav@equityresearch.asia)